Financial Reform: Don't Reform It, Just Subsidize It
Guess where it's going, America?
Thursday, President Obama found himself begging Wall Street to accept "financial reform" much like a mother chases her 5 year old around with a gooey spoon of Robitussin. Go on, it's good for you he seemed to say, promising toy trains and candy for bankers who accept the bad-tasting elixir he's pushing.
At least we can be reassured in knowing OMG! Obama is totally hip to the irony:
“Through the great banking houses of Manhattan last week ran wild-eyed alarm. Big bankers stared at one another in anger and astonishment. A bill just passed … would rivet upon their institutions what they considered a monstrous system. … Such a system, they felt, would not only rob them of their pride of profession but would reduce all U.S. banking to its lowest level.” Mr. Obama added, to laughter: “That appeared in Time magazine – in June of 1933. The system that caused so much concern and consternation? The Federal Deposit Insurance Corporation – the F.D.I.C. – an institution that has successfully secured the deposits of generations of Americans.
Join us, he said.
The same group of criminals who engineered the faulty system in the first place? The enablers of moral hazard who pimp their wares at every opportunity with securitization and insurance?
Financial reform as authored by financial morons can only lead to disaster (see also: the FDIC, which has failed 50 banks this year - last week alone cost them $985 million) and last I checked, Mr Obama was not an economist. Even the economists don't know how to jam this monster back in the box, or should I say that especially the economists do not know? Holding a position in politics does not necessarily make one equipped to make decisions of this magnitude, and let's not get into asshats like Chris Dodd putting their greasy fingerprints all over the carcass to get the last of the meaty bits before "reform" clamps down and cauterizes the gaping wound.
Not buying it. Not against financial reform but this ain't the reform I'm looking for so I respectfully decline Mr Obama's invitation to join him and hope Lord Blankfein and Michael Bloomberg have the brain cells to rub together to do the same. If you see Tim Geithner endorsing it, it's failure wrapped up with the disclaimer "In the taxpayers' best interest" as if Geithner knows anything about being a taxpayer in the first place or cares anything about your best interest.
Put in simpler terms that just about anyone can understand: if you jerk off in the dark with your left hand, you're still jerking off. Obama's on his own with that one but reliable sources indicate Blankfein loves the old left handjob from the administration. Any administration.